Disney are on the hook for a multimillion dollar penalty after federal authorities accused the company of breaking rules designed to protect the online privacy of children.
The Department of Justice said on Tuesday (December 30) that The Walt Disney Co. agreed to pay a $10 million dollar civil penalty to settle allegations that it violated child privacy laws, according to Reuters.
The complaint alleged that Disney failed to properly label some videos it uploaded to YouTube as "Made for Kids," which seemingly allowed the media conglomerate to collect personal data from minors under 13 years old for the purposes of targeted advertising.
The federal court order bars Disney Worldwide Services Inc. and Disney Entertainment Operations LLC from operating on YouTube in ways that violate the Children's Online Privacy Protection Act and requires the company to create a program to ensure future compliance.
Reuters reports that the law requires websites, apps and other online services aimed at children under 13 to notify parents about what personal information is collected and to obtain verifiable parental consent before collecting it.
"The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used," said Assistant Attorney General Brett Shumate of the Justice Department's Civil Division in a statement.
The order finalizes a settlement reached in September after the Federal Trade Commission referred the case to the Justice Department.
